The logo of cryptocurrency exchange Binance displayed on a smartphone with the word “cancelled” on a computer screen in the background.
Budrul Chukrut | SOPA Images | LightRocket via Getty Images
The world’s top digital currency exchange by trading volume said in a blogpost Friday that it would end support for “stock tokens,” crypto assets tied to the value of certain shares.
Binance had offered the tokens through a partnership with CM-Equity AG, a licensed investment firm based in Germany. According to Binance, each token was fully backed by shares held by CM-Equity AG.
Binance said stock tokens were unavailable for purchase on its website, “effective immediately.” The company will cease support for any stock tokens after Oct. 14, and users may sell or hold them over the next 90 days.
European users will be able to move their holdings over to a new “portal” from CM-Equity AG roughly two to four weeks before Binance closes all positions on Oct. 15, Binance said.
The company said the decision was taken to “shift our commercial focus to other product offerings.”
In April, Germany’s financial watchdog warned investors that Binance had likely violated securities rules with the launch of its stock tokens, adding the company faced potential fines for not publishing investor prospectuses